Over 5,000 U.S. banks can now enter crypto markets as regulators lift approval requirements. The Federal Deposit Insurance Corporation (FDIC) issued a major policy update on Friday in Washington.
The new guidance allows FDIC-supervised institutions to engage in crypto activities without needing approval. This marks a major shift toward digital asset integration and streamlined oversight.
Updated FDIC Guidelines Permit Crypto Engagement with Essential Risk Controls
Under Financial Institution Letter FIL-7-2025, the FDIC clarified that banks under its jurisdiction may engage in permissible activities involving digital assets. The letter states that these institutions can participate in crypto-related endeavors, including working with emerging technologies.
The FDIC added that banks must implement appropriate risk controls to manage associated risks. By withdrawing its prior 2022 guidance, the FDIC departs from a more conservative approach. This change aligns with a forward-facing stance on technological integration and innovation.
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Harmonizing Oversight: OCC and FDIC Boost Digital Asset Integration
The FDIC update follows a similar policy shift by the Office of the Comptroller of the Currency (OCC) earlier this month. The OCC’s updated position now allows federally chartered banks and savings associations to participate in specific crypto functions, such as offering custodial services and managing stablecoin operations.
The FDIC supervises over 5,000 banks and savings associations across the United States. These institutions hold over two-thirds of all U.S. commercial bank assets. This combined regulatory approach is expected to encourage innovation and reduce administrative burdens for banks entering the crypto space.
Federal regulators continue to coordinate with the President’s Working Group on Digital Asset Markets. They are developing additional instructions and collaborating with peer agencies. This effort aims to harmonize standards and create a unified regulatory landscape for crypto activities across the banking system. The new rules are expected to further open up the market and boost digital asset integration.
